CONTRACT LAW Essay Example | Topics and Well Written Essays - 2250 words

CONTRACT LAW - Essay Example According to Sir Frederick Pollock, contract is â€Å"A promise or set of promises which the law will enforce2 In the general conclusion of a contract, we can understand that various elements are essential in the creation of a contract which includes an agreement, consideration, and intention to create legal relations, form, capacity, legality and other such. â€Å"A valid contract requires: (1) an agreement; (2) an intention to create legal relations; and (3) consideration (unless the Contract is made by deed). Whilst each of these three requirements receives separate treatment, they must in reality be looked at together.3 When all these are in existence, we understand that a contract is in operation. â€Å"In addition, a contract consists of various terms, both express and implied. A term may be inserted into the contract to exclude or limit one partys liability (the so-called â€Å"small print†). A term may also be regarded as unfair. A contract may be invalidated by a mistake and where the contract has been induced by misrepresentation the innocent party may have the right to set it aside.† 4 This is an enforceable law the violation of which is considered serious offence and, thereby, requiring penalty and consequences. â€Å"If one party has made a statement to the other about the subject matter of the contract, in some systems he may become liable for breach of contract (non-performance) if what he says turns out to be incorrect.† 5 Therefore the party that violates the contract is normally bound to receive its consequences. â€Å"A non-performance which is not excused may give the aggrieved party the right to claim performance, recovery of money due, or specific performance, to claim damages, to withhold his own performance, to terminate the contract and to reduce his own performance.† 6 In this background let us consider the two cases given for discussion. To consider the first case of contract violation